Inventory trade folklore in pre-1929 Jazz Age New York has one priceless perception for me – “you be shopping for when they’re crying, you be promoting when they’re yelling”. In order I scan the markets, I noticed that the mom of all yelling is going down within the AI enviornment and its decibel rely is loudest the place the ignorance about its nuances is the best, as within the Gulf. I’m sure that when the AI bubble pops, untold billions in investor wealth will likely be worn out, simply because the dinosaurs had been wiped from the face of the earth by one cosmic asteroid hit 65 million years in the past. So my actual time technique name now could be – Matt be promoting when they’re yelling. In different phrases, load up on shares and sectors with the least correlation to the AI theme and basic ballast to outlive the AI asteroid hit my macro crystal ball and the Silicon Valley grapevine tells me is all too attainable in 2026.
The sensible cash is aware of that information middle investing is an accident ready to occur whereas the dumb cash intends to borrow from the UAE industrial banks to present America $20 billion in AI fairness it doesn’t want simply to earn brownie factors from Trumpworld. Be aware that actual property datacenter funding belief REITS have been one of many worst sectors within the REIT constellation in 2025, clear proof of a provide glut, which at all times precedes a Darwinian shakeout. Keep in mind the worldwide fiber optics rip-off in 2000? I do however lots of of buyers don’t as a result of their fave pre-IPO unicorns are actually resting eternally and fortunately in cash heaven, jannat al-faloos.
I can simply visualize the parabolic path the AI warmth searching for missile will take because it zaps herds of mild, trusting lambs as soon as pinstriped scavengers have fleeced poor Bambi Al-Investor of all his wool enroute to the slaughterhouse. Tariff Man has ensured that shopper inflation will rise effectively above 3.5% by subsequent summer season, even when his handpicked accolades on the FOMC refuse to acknowledge the macro storm clouds. The exodus of a number of million migrants ensures a spike in wage inflation danger. This implies the post-Powell Fed will likely be uncovered because the political paper tiger it truly is even because the inflation information goes ballistic and the present slowdown morphs into full blown recession. The one purpose the US financial system didn’t hunch into recession in 2022 regardless of essentially the most draconian financial tightening by the Powell Fed in 40-years was that the rate of interest hike had been offset by Papa Joe’s $2 trillion fiscal lollipop.
The Fed will likely be compelled to lift and never lower rates of interest at that time or US Treasury debt can have its personal Liz Truss with the 10-year US Treasury yield at 5%. That is when the bloodiest cycle of wealth destruction Silicon Valley has ever seen for the reason that demise rattle of the dotcom bubble in 2000 will grip Wall Avenue and world finance.
So what do I wish to personal when the AI mutant ninja chickens come residence to roost on Nasdaq? One, the Lords of Battle. Victor Bout was trapped by a DEA sting and destined to spend the remainder of his life within the Membership Fed till Putin’s FSB organized for him to retire at a Dacha in Sochi in trade for the beautiful redhead Anna Chapman, the Mata Hari of our instances. But the actual fact stays that the Chilly Battle 2.0 rages with each Moscow and Beijing whereas Lockheed and Northrop have a mere 0.2% correlations with AI. Hurrah!
Two, previous is gold. The oldest Child Boomers simply turned 80 in America and even the Trumpster is a youthful 79. The grownup diaper market in each Japan and China is greater than the newborn diaper market. The far proper events in Europe will throw out tens of tens of millions migrant employees as soon as the welfare states go kaput. The previous, daring and exquisite theme is barely correlated with AI in case you contemplate senior residing REITs like Ventas and Welltower. My name? Ahlan wa sehlan!
Three, défense de fumer, mamnue altadkhin, no smoking, rauchen verboten! The Islamic world’s love affair with tobacco that started within the reign of Sultan Ahmet Khan Osmanlu, who constructed the stunning mosque of Galata bridge in Eminönü is in full swing from Rabat to Jakarta and Sarajevo to Khartoum. Altria and Philip Morris are thus cash machines with a 0.1 correlation to AI. Altria trades at a mere 9X earnings. Its smokeless product menu is a winner and the shares really rose when AI/excessive beta tech was bloodied by Trump final Friday. So that is what I will likely be shopping for when the AI lemmings are crying on the Day of Damage!
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